This US Dollar forecast will discuss events and key data that could affect USD exchange rates in the coming days if you are making a currency transfer. This table shows the change for the GBP/USD and the difference in value over the last month:
|Currency Pair||% Change||Difference on £200,000|
The US Dollar has found support around 1.34 against Sterling following a recent dip. The question many clients are asking is will we see a move back to, or through 1.35 over the coming weeks? Personally, I feel that even if Brexit negotiations progress over the coming days the greenback is likely to find a lot of support under that level, which seems to have become a key threshold for the pair. Any rise in Sterling’s value seems to be inextricably linked to Brexit negotiations and with so many unanswered questions around this topic, my risk adversity when it comes to the Pound at present is extremely minimal.
With the US economy finally living up to expectations and operating now at its full potential, as a report in Bloomberg yesterday suggested, it seems as though the US Dollar is likely to find plenty of market support over the coming weeks.
Even President Trump and his Twitter outbursts seems to do little harm these days, with the US economy thriving as more jobs are created through internal industrialisation and an increase in their global trade output.
With Trump’s much emphasised tax cuts also moving closer to being passed, we may well find that it is in fact the greenback that could make another advancement rather than the Pound.
Any such move would likely meet resistance around 1.30 and if Brexit talks do progress and we move to phase two of the negotiations, then this could help stabilise GBP and curb any aggressive losses in the short-term.
Whilst investor confidence in the UK economy remains low, the Pound’s value will remain fragile in the eyes of investors and as such I would be wary about assuming that the Pound is set for a further rise anytime soon.
For more information on how upcoming events could affect your currency transfer, call our trading floor on 01494 725 353 or email me directly at firstname.lastname@example.org.